Florida: A Unique Cultivation Environment

The state of Florida presents both opportunities and challenges for cannabis cultivation. On one hand, the subtropical climate, long growing season and high patient demand (in the medical market) make the state an attractive location for cultivation operations. On the other hand, frequent hurricanes, tropical storms, humidity, and regulatory constraints raise the cost and operational risk for cultivators.

Indoor vs. outdoor (and greenhouse/hybrid) in Florida

In many states, cannabis cultivators choose between outdoor, greenhouse (hybrid) and indoor facilities. Florida’s experience is shifting. According to a recent article by FLUENT Corp., the company’s new Florida facility will combine 45,000 ft² of indoor canopy and 58,000 ft² of greenhouse operations in a 103,000 ft² footprint. (Cannabis Equipment News) Similarly, AYR Wellness Inc. announced on October 14 2025 that its first indoor cultivation facility in Florida spans 97,580 ft² with nearly 50,000 ft² of grow canopy — a clear emphasis on indoor. MORE ABOUT: Cannabis Business Times
These examples show a trend: large operators in Florida are favoring indoor or hybrid indoor/greenhouse models over purely outdoor cultivation.

Why is that? There are several reasons:

  • Control over environment: Indoor/greenhouse allows control of light, humidity, pests and disease—key in Florida’s challenging climate. As one source notes: “Indoor cultivation appears to be most pervasive … as cultivators shift indoors.” MORE ABOUT: Department of Justice
  • Quality and consistency: Especially for premium flower, indoor growth allows for more consistent yields, potency and terpene profiles, which some Florida operators emphasize.
  • Weather risk mitigation: Outdoor cultivation in Florida is exposed to hurricanes, wind damage, heavy rain and flooding—all of which can damage crops, interrupt operations or reduce yield.

Are weather/hurricanes an issue for outdoor cultivation?

Yes. Florida’s hurricane and tropical‐storm exposure makes outdoor cultivation riskier. Some key points:

  • Outdoor grown plants are subject to wind, rain, flooding, humidity, mold and pests—each of which can degrade quality or cause complete loss of crop.
  • Hurricane threats often require growers to have emergency protocols, robust infrastructure (e.g., storm shutters, backup power, drainage) or simply avoid relying on outdoor growth.
  • Given these risks, many operators favor indoor or greenhouse cultivation where plants are sheltered and environment controlled.

One resource highlights that outdoor growth may be cheaper and leaner in some climates—but the control trade-off is larger. MORE ABOUT: Dimensional Insight. In Florida, where storms and unpredictable weather are part of the climate, the trade-off often favors indoor/greenhouse.

Although I found no publicly published data that quantifies losses from hurricanes specifically for Florida cannabis cultivators, the logic is clear: hurricanes raise both capex and operational risk, thus pushing large operators toward indoor/hybrid.

Ownership Structures: MSOs, Vertically-Integrated Growers, White Label & Private Label

Understanding who is growing and how is key to the cultivation infrastructure in Florida and the broader U.S. cannabis industry.

MSOs and vertically-integrated growers

In Florida, large multi-state operators (MSOs) and state-dominant cultivators tend to build or acquire their own cultivation facilities (indoor/greenhouse), manufacture their own products and distribute through their own dispensaries. For example, AYR’s new indoor facility in Florida is directly tied to its own retail footprint. (Ocala-News.com) According to a Global Go Analytics blog, “the major MSOs generally go it alone, adopting the same vertical-integration model that they learned to love in restrictive licensing states like Florida.” MORE STATISTICS HERE: Global Go
This model means the cultivator owns the land/facility, manages the grow, handles processing and distributes to its own retail outlets. It gives control of margin, brand and supply chain.

White-label cultivation / private label / contract grow

White label services in cannabis are when a facility (cultivation or manufacturing) grows or produces product for another brand, which then resells the product under its own label. According to a white label overview, cannabis brands use white label manufacturing when they don’t want to build their own facility or manage the grow themselves.
However, in Florida’s regulated medical market, many dispensary operators must grow or manufacture their own product (vertical integration rules have historically applied). A 2019 report noted Florida’s MMTC licensing required in-state cultivation/manufacturing. READ HERE: Marijuana Doctor
That means white-label cultivation is potentially less prevalent in Florida compared to other states where licensing allows non-vertically integrated brands to source from third-party cultivators.

What is the percentage of white-label cultivators versus bigger MSO-owned centers? What about private label share?

Unfortunately, I was unable to locate credible recent data that provides percentages for:

  • The percentage of cultivators in Florida that are white-label contract growers vs. MSO-owned/facility-owned.
  • The percentage of product volume that is produced via private label or contract cultivation vs. in-house cultivation/branding.

The lack of publicly disclosed state‐level breakdowns for contract vs. in-house cultivation makes exact quantification difficult. Instead, industry commentary suggests:

  • Large MSOs favour owning cultivation assets (especially indoor/greenhouse) in Florida.
  • White/contract label models are more common in manufacturing or in states with more open sourcing options—but less clearly documented for Florida cultivation.
  • Some smaller brands may rely on contract cultivation or white‐label manufacturing of flower/processed product, but data on volume and share is not widely published.

Given that Florida historically required vertical integration (cultivation + manufacturing + retail) for MMTCs, one can infer that a high majority of Florida cultivation is owned by operators rather than outsourced. Still, the recent court ruling against vertical integration (July 2019) left open the possibility for more contract/white-label arrangements in future.

Thus, while we can’t provide a reliable “percentage” figure, we can state the industry appears MSO/vertically-integrated-heavy in Florida, with white-label/contract cultivation being a smaller minority at present—but increasing over time as licensing and sourcing rules evolve.

Implications for Florida Cultivators & Stakeholders

Here are some of the practical takeaways:

Quality, cost and positioning

Indoor or greenhouse cultivations allow better control of quality (potency, terpene profile, yield), which is especially important in a competitive medical market like Florida. For operators seeking premium flower, indoor is preferred. For cost-leadership, greenhouse/hybrid may offer balance. Outdoor is riskier given hurricanes and climate volatility.

Risk management

Florida cultivators must plan for hurricanes/tropical storms: building robust facilities (storm-proofing, backup power, drainage), shifting away from outdoor to sheltered environments, and factoring in potential downtime or crop losses. This may increase capex, but reduce risk.

Contracting/white label future

If Florida licensing becomes more open (less vertically-integrated), cultivators may see growth in contract/white‐label models. Smaller brands may outsource cultivation, larger MSOs may still keep ownership. Greenfield cultivator businesses might focus on serving other brands. Monitoring licensing changes will be key.

Strategic sourcing

Retailers and brands may consider whether to build their own cultivation or partner/contract with established growers. Given the cost and regulatory complexity of large indoor builds (e.g., AYR’s 50,000 ft² canopy facility) – white label or contract cultivation may offer a faster speed-to-market for brands without owned infrastructure. READ MORE: Cannabis Business Times

Hurricane/weather readiness as competitive edge

Cultivators who invest early in storm-resilient infrastructure may gain advantage over those relying on outdoor production. Especially given Florida’s exposure, demonstrating resilience can reduce supply chain disruption and support stable product delivery.

Conclusion

In Florida’s cannabis cultivation landscape:

  • A clear trend toward indoor and greenhouse/hybrid grow facilities is emerging, driven by quality demands and weather risk (hurricanes, storms, humidity).
  • Outdoor cultivation is viable, but subject to elevated risk in Florida’s climate, making it less attractive for large operators focused on consistency and premium product.
  • Ownership-wise, Florida leans heavily toward MSO/vertically-integrated cultivators owning their own facilities. White-label/contract cultivation exists in the broader industry, but data suggests it remains a smaller share in Florida—though this may evolve if regulatory sourcing rules loosen.
  • While exact percentages for white/contract cultivation vs in-house cultivation aren’t publicly available, industry commentary strongly supports the dominance of in-house models for Florida’s licensed MMTCs.

For stakeholders evaluating Florida cultivation opportunities (investors, operators, brands, service providers), the key is: choose indoor/greenhouse over pure outdoor, plan for weather/hurricane resilience, understand your ownership or contracting model, and monitor regulatory shifts that might open up more white-label/contract sourcing paths.

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